3 Ways to Boost Average Order Value

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Your store is up and running and the orders are starting to come in!  However, you start to notice you are not pulling in as much revenue as you thought you would be, considering the number of orders being processed.   

No need to panic!  This is a common issue affecting business of all sizes.  The issue is your average order value is low. Average order value, or AOV, is total revenue divided by the number of orders placed; it simply indicates the size of orders your customers are placing.  So, how can you get customers to purchase more items?

Here are 3 ways to boost average order value! 

1. Set a minimum order amount to qualify for free shipping

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One of the biggest reasons consumers report abandoning their online shopping cart is shipping costs.  By setting a minimum order amount to avoid shipping fees, customers are encouraged to spend more.  In fact, a study done by the University of Florida found that for stores with free shipping on orders over $75, the average order value was $64.68, compared to the an average order value of $46.04 when free shipping was offered to everyone regardless of order size.  By setting a minimum order amount to secure free shipping, your store should see some bigger packages heading out the door!

2. Bundle Products

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Consumers love to feel like they are getting a good deal.  Bundling products is a great way to give customers the satisfaction of feeling like they are receiving a bargain.  For example, a store might bundle a tee shirt with a ball cap.  While in theory you would generate more revenue if the two items were sold separately, customers are oftentimes likely more hesitant to buy more than one item at a time.  The perceived transaction value of bundling products can increase the likelihood that they do buy both products, thus increasing the value of their order.

3. Try out a loyalty program

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Everyone knows how important repeat customers are for business, and what better way to encourage loyalty than a loyalty rewards program.  (Hint: 70% of total sales come from repeat customers, according to a study conducted at the Northwestern University Center for Retail Management).  One study has found that consumers are 80% more likely to shop where they are rewarded for their frequent business.  So how does this translate into bigger orders?  One way to leverage a rewards program to increase order size is by offering more points (or your store’s equivalent of points) for bigger orders.  Leading loyalty rewards company Smile.io suggests that by extending rewards to customers who place orders 15-20% greater in value than a store’s current average order size is a great way to encourage the placement of bigger orders.


After adopting any of these strategies to increase AOV, you can expect to see bigger packages being shipped out and more revenue flowing in!  

Any other tips on increasing AOV?  Feel free to comment below!